Nasdaq Options Rule 3

Key provisions:

• Options market participation: Establishes the requirements for trading options on Nasdaq, including obligations of market participants, order handling standards, and trading conduct requirements.
• Order entry and execution: Governs how options orders are submitted, prioritized, routed, displayed, matched, executed, modified, and cancelled within the Nasdaq options market.
• Market maker and market quality obligations: Sets standards for market makers, including quoting responsibilities, liquidity provision, and maintaining fair and orderly markets.
• Risk controls and compliance: Requires firms to maintain appropriate risk management controls, comply with trading and operational requirements, and prevent disruptive or improper trading activity.
• Trading operations and transparency: Covers trading procedures, auctions, trade reporting, error handling, system functionality, and other operational processes designed to promote efficient, fair, and transparent options trading.